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Australian equities carry on despite shock of jobs data

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Fuseworks Media
Fuseworks Media

By Betty Lam (Sales Trader, CMC Markets)

Embracing another session of mixed-bag leads offshore, local shares spent most of the morning swinging between mild gains and losses, before dipping into double-digit red dragged down by the financials which were down by over 0.5% as a sector.

Investors reserved any real commitment to trade until after employment data was released. Unemployment rate spiked to 6.4%, the highest reading the nation has seen in over 12 years. Adding another blow to investors, July saw a consolidated loss of 300 jobs mainly as a result of a drop in part time employment. The Aussie dollar was quick to respond and shed over half a cent to reach the day’s low 0.928.

In afternoon trading, Australian equities received a 10 point booster following the surprising employment data, these gains were lost almost as quickly as they were added. The local bourse experienced some resistance at the 5500 level, however a midday 20-point kicker has kept the ASX200 within the 5500 ranges. Volumes remain low as traders remained anxious about developments in the Ukraine ahead of the flood gates of the current reporting season.

Amongst continued concerns in Ukraine, a flight to safety was adopted with a gold gaining 1.8% overnight. Yellow-metal miners were the market leaders today with the sector up over 4% in afternoon trading. All eyes remain on RIO with the miner unleashing its interim report just after market close. Considered to be the first real barometer for the reporting season, the miner dusted off earlier losses to trade in the green.

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